Honda and GM benefit most from Toyota recall

11:22, February 24, 2010      

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The U.S. auto industry information website recently conducted a survey that shows after Toyota announced the massive recall, Toyota consumers have turned to Honda and General Motors cars, making Honda and GM the biggest beneficiary of this recall. Is there a similar situation in the Chinese market?

Honda Motor (China) Investment Co., Ltd. spokesman Zhu Linjie said Honda sales in the Chinese market did not decline because the recall hurt the brand image of Japanese cars, nor did Honda benefit from the recall of its rival Toyota. In January of this year, Honda sales reached 58,283 cars, an increase of 53 percent. This level of growth is about the same compared with previous years.

In the U.S. market, Honda is clearly the beneficiary. The U.S. auto industry information website survey shows that the ratio of consumers who are willing to buy Toyota dropped from the previous 13 percent to 10 percent, while those who are willing to buy General Motors and Honda vehicles raised respectively from 14 percent and 11 percent up to 15 percent and 12 percent.

In fact, after Toyota's recall, General Motors and other manufactures immediately took measures, using a variety of preferential treatment to gain more market share. For example, for former Toyota owners who buy GM's cars, those qualified customers will be able to enjoy five-year interest-free loans, and those who paid in cash will get a 1,000 U.S. dollar refund. In addition, customers who rent cars may also enjoy preferential treatment of up to 1,000 U.S. dollars. Clearly, these incentives have had some success.

By People's Daily Online
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